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All amounts are in U.S. dollars and "$" as the unit. The third quarter of 2021 and other important highlights

TORONTO--(BUSINESS WIRE)--Largo Inc. ("Largo" or "Company") (TSX: LGO) (NASDAQ: LGO) announced today Its financial results for the third quarter of 2021 include revenue of 53.9 million U.S. dollars and net profit of 9.2 million U.S. dollars. The company recently announced the results of a pre-feasibility study, which predicts that by increasing its access to vanadium, it can significantly increase profitability and has achieved important milestones in the development of its vanadium-based energy storage business.

This press release features multimedia. View the full version here: https://www.businesswire.com/news/home/20211110006423/en/

Largo reports financial results for the third quarter of 2021, with net income of US$9.2 million; progress in implementing Largo's complementary value proposition (Photo: Business Wire)

Largo Co-Chairman Ian Robertson commented: "We believe that our two very different but related value propositions are clear-our shareholders have an experienced vanadium production business in the new economy, showing clear room for value growth. And an emerging energy transition business, which provides opportunities for the manufacturing and sales of vanadium-based energy storage systems to increase revenue. Our recently announced pre-feasibility study results significantly improve the predicted profitability of our vanadium and titanium dioxide production business As well as increasing the market share of our energy storage products to support these two businesses. We believe that the updated Largo brand reflects our commitment to increase shareholder value through the vertical integration of the two business propositions."

Paulo Misk, President and CEO of Largo, said: “The expansion of V2O5 production and the incremental cash flow generated from the production and sales of TiO2 pigments provide our shareholders with a clear advantage. We are very pleased to report that the proven results of the Maracás Menchen mine The estimated reserves tonnage increased by 305%7, and the measured and indicated resource tonnage increased by 128%7. We believe that the company’s existing non-magnetic concentrate production of titanium dioxide will help enhance its operational competitiveness, as well as its energy storage business The transformation should bring about an increase in shareholder value for the company. The strong vanadium price in the third quarter caused the company's revenue and sales per pound1 to increase by 96% and 69% respectively over the same period in 2020. Despite the sales performance in the third quarter of 2021 The decline was mainly due to global logistics delays, but our operating performance was significantly improved compared to the previous quarter, driven by improved recycling rates and increased throughput."

Direct mining and production costs

Basic earnings (loss) per share

Diluted earnings (loss) per share

Cash provided before non-cash working capital projects

(Used in) Net cash provided by operating activities

(Used for) Net cash provided by financing activities

Net cash used for investment activities

Operation and sales performance of Maracás Menchen mine

Mined ore grade-effective grade (%) 4

V2O5 (flaky powder) produced (tons)

V2O5 produced (equivalent pounds) 1

Total V2O5 equivalent sold (tons)

V2O5 equivalent sales produced (tons)

Purchased V2O5 equivalent sold (tons)

Cash operating costs excluding royalties1 (USD/lb)

Updated the webcast and conference call information for the third quarter of 2021

The company will host a webcast and conference call on Thursday, November 11th at 10 am Eastern Time to discuss its results and progress in the third quarter of 2021.

Webcast and conference call details:

https://produceredition.webcasts.com/starthere.jsp?ei=1510027&tp_key=8437e02a6

Toll free in North America: 1 (866) 269-4261

Toll free in North America: 1 (888) 203-1112

Within 60 days after the end of the conference call, a replay recording will be available on the company's website.

The information provided in this press release shall be combined with Largo’s unaudited condensed interim consolidated financial statements as of September 30, 2021 and the three and nine months of 2020 and its management’s assessment for the period ending September and nine months of 2021. The discussion and analysis ("MD&A") read September 30, 2021 and can be found on our website www.largoresources.com or in the company's respective profiles at www.sedar.com and www.sec.gov.

The technical and scientific information contained in this press release has been reviewed by Porfrio Cabaleiro Rodriguez and prepared under its supervision 43-101-Disclosure Standard for Mineral Projects. The scientific and technical information contained in this press release has been published by the company on Thursday, November 4, 2021, in the news titled "Pre-feasibility study shows that improved access to and profitability of vanadium strengthens the basis for strategic commitment to energy storage" Disclosure of business in the draft".

Largo is a company headquartered in Canada that has historically been committed to the production and supply of high-quality vanadium products. The company believes that the development and sale of a vanadium-based utility-scale electric energy storage system to support the continuous transition of the planet to renewable energy will not only provide attractive economic opportunities for the use of the company’s vanadium products, but also have the opportunity to improve the company’s sustainability sex. The company is confident to use its VPURETM and VPURE TM products in its VCHARGE vanadium redox flow battery technology. These products come from one of the world's highest-grade vanadium deposits at the company's Maracás Menchen mine in Brazil, which are competitive and practical. Long-term energy storage products. Therefore, the company is making a strategic transformation by creating an energy storage business to vertically integrate with its efficient vanadium production and mining business to create a unique competitive advantage in the fast-growing long-life energy storage market.

Largo's common stock is traded on the Nasdaq Stock Market and the Toronto Stock Exchange under the symbol "LGO". For more information about the company, please visit www.largoinc.com.

This press release contains forward-looking information required by Canadian securities legislation, some of which may be regarded as "financial prospects" ("forward-looking statements") applicable to Canadian securities legislation. The forward-looking information in this press release includes, but is not limited to, statements about the expected time and volume of future production and sales; the cost of future activities and operations; the ability to increase shareholder value through the company's vertical integration; the scope of capital and operating expenditures; worldwide The impact of the delay and related price increases on the company's global supply chain and future V2O5 equivalent sales, and the submission of the National Instrument 43-101 technical report on the Maracás Menchen mine within 45 days after the publication of the technical report results. The forward-looking information in this press release also includes, but is not limited to, information about our ability to establish, finance, and operate VRFB business, our ability to protect and develop our technology, our ability to maintain our intellectual property rights, and our ability to be competitive The ability to market, sell, and deliver our VCHARGE± battery system at a price and specification, we have the ability to obtain the production resources needed to build the VCHARGE± battery system, the ability to successfully complete the award negotiation with DOE, and complete product development and delivery in Massachusetts. Stack manufacturing facilities and generally adopt VRFB technology in the market. Forward-looking statements can be identified through the use of forward-looking terms, such as "plan", "expected" or "unexpected", "anticipated", "budget", "planned", "estimated", "forecast", "intended" , "Expected" or "unexpected" or "believe", or variations of such words or statements, certain acts, events or results "may", "may", "will", "may" or "will be Take", "occur" or "achieve". All information contained in this press release, except statements of current and historical facts, is forward-looking information. Forward-looking statements are subject to known and unknown risks, uncertainties and other Factors that may cause the actual results, activity levels, performance or achievements of Largo or Largo Clean Energy to be materially different from those expressed or implied by such forward-looking statements, including but not limited to Largo’s annual information sheet and its The risks described in public documents filed on www.sedar.com and www.sec.gov from time to time. Forward-looking statements are based on management’s opinions and estimates on the date of making such statements. Although Largo’s management has tried to determine Important factors that may cause actual results to differ materially from the results contained in the forward-looking statements, but there may be other factors that cause the results to be inconsistent with expectations, estimates or expectations. There is no guarantee that such statements will prove to be accurate because of the actual results And future events may differ materially from the expectations in such statements. Therefore, readers should not rely excessively on forward-looking statements. Except for applicable securities laws, Largo does not undertake to update any forward-looking statements. Readers should also review the same applicable Largo The risks and uncertainties of annual and temporary MD&A.

The trademark is owned by Largo Inc.

The company uses certain non-GAAP financial performance measures in its press releases and MD&A, which are described in the following sections.

The company’s press release relates to sales per pound, which is a non-GAAP performance measure used to provide investors with information about key metrics used by management to monitor the company’s performance.

This indicator, along with cash operating costs and total cash costs, is considered one of the key indicators of the company's ability to generate operating income and cash flow from its Maracás Menchen mine and sales activities. This measure of income per pound does not have any standardized meaning as stipulated by IFRS, and is different from the measure determined under IFRS. This measurement is intended to provide additional information and should not be considered in isolation or as a substitute for performance measurement standards prepared in accordance with IFRS. This indicator does not necessarily reflect the net income or cash flow of operating activities determined in accordance with International Financial Reporting Standards.

The following table provides a reconciliation of this measure of sales revenue per pound based on the unaudited condensed interim consolidated financial statements for the third quarter of 2021.

Revenue-V2O5 Production 1

V2O5 Sales-Production (000 lbs)

V2O5 revenue per pound of V2O5 sales-production (USD/lb)

Income-Purchased V2O52

V2O5 for sale-buy (000 lbs)

V2O5 sales per pound-V2O5 revenue purchased (USD/lb)

Sold V2O5 (000 lbs)

V2O5 revenue per pound of V2O5 sales

FeV Sales-Production (000s kg)

FeV revenue per kilogram of FeV sales-production (USD/lb)

FeV Sale-Buy (000s kg)

FeV revenue per kilogram of FeV sales-purchases (USD/lb)

FeV revenue per kilogram of FeV sales

V2O5 equivalent sold (000 lbs)

Sales revenue per pound (USD/lb)

Calculated based on note 16 of the company’s unaudited condensed interim consolidated financial statements as of September 30, 2021 and September 30, 2020: V2O5 revenue is US$28,627, minus the income from the purchase of products is US$0, and the income from the production of products It is US$28,627. FeV's income is $25,234 minus the income of purchasing products of $2,613, and the income of producing products is $22,621.

Operating cost per pound of cash

The company’s press release mentions operating costs per pound of cash, which is a non-GAAP performance measure designed to provide investors with information on key metrics used by management to monitor performance. This information is used to evaluate the performance of the Maracás Menchen mine compared to the plan and the previous period, as well as to evaluate its overall effectiveness and efficiency.

Cash operating costs include mine operating costs, such as mining costs, plant and maintenance costs, sustainability costs, mine and plant management costs, royalties and sales, general and management costs (all for the mine assets department), but not Includes depreciation and amortization, share-based payments, foreign exchange gains or losses, commissions, reclamation, capital expenditures, and exploration and evaluation costs. Operating costs that are not part of the mining property segment are also not included, including switching costs, product purchase costs, distribution costs and inventory write-downs. These costs are then divided by the pounds of vanadium sold at the Maracás Menchen mine to arrive at the cash operating cost per pound. This measurement is different from the new non-GAAP total cash cost measurement used by companies to measure their overall performance (see later in this section).

These measures, along with revenue, are considered to be one of the key indicators of the company's ability to generate operating income and cash flow from its Maracás Menchen mine. These cash operating cost measurements do not have any standardized meanings stipulated by the International Financial Reporting Standards, and are different from those determined in accordance with the International Financial Reporting Standards. These metrics are designed to provide additional information and should not be considered in isolation or as a substitute for performance metrics prepared under IFRS. These measures do not necessarily represent the net income or cash flow of operating activities determined in accordance with International Financial Reporting Standards.

In addition, the company's MD&A refers to cash operating costs that do not include royalties. This is a non-GAAP performance measure, calculated as cash operating costs minus royalties, as shown in the table below.

The following table provides a reconciliation of the operating costs per pound of cash for the Maracás Menchen mine and the operating costs of the unaudited condensed interim consolidated financial statements for the third quarter of 2021.

Professional, consulting and management fees 2

Other general and administrative expenses 2

Less: iron ore sales loss 1

Less: depreciation and amortization expense 1

Cash operating costs excluding royalties

Sales of V2O5 produced (000 lbs)

Cash operating cost per pound (USD/lb)

Cash operating costs excluding royalties per pound ($/lb)

According to note 20 of the unaudited condensed interim consolidated financial statements of the company for the three and nine months ended September 30, 2021 and September 30, 2020.

According to the mining property segment in Note 16 of the Company's unaudited condensed interim consolidated financial statements for the three months and nine months ended September 30, 2021 and September 30, 2020.

According to Note 5 of the unaudited condensed interim consolidated financial statements of the Company for the three and nine months ended September 30, 2021 and September 30, 2020.

1 Cash operating costs excluding royalties and sales revenue per pound per pound are reported on non-GAAP. Please refer to the "Non-GAAP Measures" section of this press release. Sales revenue per pound is calculated based on the number of V2O5 sold during the specified period.

To convert 2 tons to pounds, 1 ton = 2,204.62 pounds or pounds.

3 According to the consolidated statement of financial position, it is defined as current assets minus current liabilities.

4 Effective grade means the percentage of magnetic material mined multiplied by the percentage of V2O5 in the magnetic concentrate.

5 Global recycling is the product of crushing recycling, grinding recycling, kiln recycling, leaching recycling and chemical plant recycling.

6 GAAP-Generally Accepted Accounting Principles

7 Drilling and engineering work on the Campbell Pit, NAN and GAN deposits, in addition to containing titanium dioxide ("TiO2"), has resulted in a significant increase in reserves and resources

View the source version on businesswire.com: https://www.businesswire.com/news/home/20211110006423/en/

For more information: Alex Guthrie, Senior Manager of External Relations, Investor Relations 1.416.861.9778 aguthrie@largoinc.com

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